Discussions, debates and disagreements have already begun as Loudoun County's elected officials begin to grapple with the yearly budget process and an even more dismal financial forecast. The discussions began at the Joint School Board/Board of Supervisors Committee meeting on Thursday, Oct. 8, one day after the Board of Supervisors Finance Committee adopted fiscal guidance recommendations, which sent shock waves through the Loudoun County Public Schools (LCPS) administration building.
The news that some supervisors were recommending possible funding reductions of $50, or $75 or $100 million to the current levels of local school funding came as a real surprise, said LCPS Superintendent Ed Hatrick. “We are still trying to figure out what it all means. These are real numbers. If you have to find those kinds of reductions, you will dismantle the school system we have now,” Hatrick advised.
Hatrick then provided a quick analysis of the impact of such cuts, given LCPS expects an additional 3,000 new students to add to a Sept. 30, 2009 student enrollment of 60,069, coupled with opening and staffing two new high schools and an elementary school. LCPS hopes to maintain state funding levels, but that is only due to the steady increase in yearly enrollment, according to Hatrick. But certainly no increase in state funding is anticipated.
Disagreements surfaced quickly between Supervisors Jim Burton (I-Blue Ridge), chairman of the Finance and Government Services Committee, and Vice Chairman Susan Buckley (D- Sugarland Run) regarding the Finance Committee’s fiscal guidance recommendations.
Burton provided a summary of the financial situation the county faces for members of the Joint School Board/Board of Supervisors Committee. The membership includes Committee Chairman Supervisor Sally Kurtz (D- Catoctin); supervisors Buckley and Burton; School Board Vice Chairman Warren Geurin (Sterling), and members Jennifer Bergel (Catoctin) and Tom Reed (At-Large).
“The picture is not rosy. Revenues are not getting better,” said Burton after looking at the preliminary report. “One is never prepared for this kind of situation. We have been following the county’s’ financial situation very closely at the Finance Committee, now for last year, and more intensively the last six months. Burton described the FY11 budget process as more difficult than the FY 10 process, which he said was “Very difficult in its own right.”
Burton summarized the action taken one day earlier by the Finance Committee to provide fiscal guidance to supervisors, the County Administrator and Loudoun County Public Schools (LCPS) as budget preparations begin. Based on the Finance Committee’s recommendation and the fiscal guidance adopted, an even worse financial year looms in Loudoun County. Given current available tax revenue figures and projections, Loudoun may need to implement funding decreases ranging from $20 to $30 or $40 million from the county's side of the budget. Depending on supervisors’ ultimate action, the impact on LCPS is far greater, with a range of $50 to $75 million or $100 million in cuts.
Last year, Supervisors adopted Finance Committee fiscal guidance recommendations, which required the county administrator and LCPS to develop several budgets, beginning with no increase in funding, and then three tiers of spending cuts representing 5,10, and 15 percent reductions. Acknowledging "...a rather spirited discussion in the Finance Committee,” Burton said the members voted “...for fiscal guidance, a framework for the county administrator and Dr. Hatrick to bring forward options for decisions…for a budget and tax rate on April 1.”
The committee’s recommended fiscal guidance regarding operating budgets will be considered by the full board on Oct. 20. Burton explained that the committee recommends budget options including a zero percent change, and options for budgets of 5 percent above, and 5 percent below that.
"There are some who think the guidance we (the Finance Committee) came up with yesterday will cause tremendous harm to both agencies," said Burton. "We will have that discussion on Oct. 20,” with county staff continuing to run the numbers. The Board of Supervisors may decide those guidances are too strict...the budget debate will include “serious structural changes on the county side and serious public policy discussion." Continuing, Burton noted, “…that is what the budget process is…that is where the organization priorities really surface. “
“ I do not support what the Finance Committee did this week,” Buckley said, challenging the Finance Committee’s action and structure of that action. Buckley cited a two-phase budget process: Phase One provides for Information gathering and analysis, and Phase Two allows for decision making. Buckley argued that the committee was making decisions in October that should not be made until April.
"Taking a decision that is part of Phase Two into Phase One is counterproductive," she argued. "The impact on average tax bill is a question is answered in April, not October. “We have two weeks to figure this out. If the structure is not right, then the end result won’t be right. 'Reminds me of the way Loudoun County once did its budgets, with decisions made without knowing the implications.”
Continuing, Buckley added, “We now do a knowledge base budget. Allows decisions makers to know the implications of their decisions and allows community time to engage in the process. A community driven process."
Chairman Kurtz spoke of her own concerns with the fiscal guidelines and possible budget reductions to both schools and county operating budgets, and kept the lines of communication open during the meeting, allowing school board members and Dr. Hatrick to comment on the committee's adopted fiscal guidance, and to voice individual concerns and objections.
School Board member Jennifer Bergel spoke of her concerns regarding budget reductions, and the fate of two new high schools scheduled to open for the fall 2010 school year: Woodgrove in Purcellville and Tuscarora in Leesburg. “For me to hear the possibility of two high schools not opening in a district I represent was the just the worst absolute thing that could happen. It is just not appropriate to throw things out there like this,” Bergel said.
Buckley responded, saying “This is a data driven exercise and needs to include a summary of what Dr. Hatrick told us....We may talk about closing schools; we may talk about not opening schools. It is on the table; it is being talked about, what happens if we don’t open schools. Legitimate point of discussion. Do I think it will happen, No, but it has to be part of the discussion."
John Wood, CEO of Telos and the only non-elected member of the committee, said the public needs to understand that “These two boards have to have this dialogue. It is not that either board wants to do anything to hurt anyone. Unfortunate set of circumstances.”
Supervisors Buckley and Burton engaged in their own seemingly spirited but private discussions during a short break, and were joined by Kurtz and Wood. School Board members Geurin, Bergel, Reed and Priscilla Godfrey (Blue Ridge) discussed budget implications with Supt. Hatrick during the break.
%7Cutmcsr%3D(direct)%7Cutmcmd%3D(none)%3B%2B__utmv%3D93627444.-%3B)
So here is my biggest concern. What about those of us who are employeed with LCPS, and/or other county entities, that are going to go another year without any raise in financial compensation? If things progress the way that they appear to be going, this will be the second year in a row that LCPS employees have not recieved a COLA raise, let alone our yearly step increase based on performance. Honestly, if this occurs, I can easily see many LCPS employees and teachers leaving the county to go to another prosperous industry or another county closer to home. The majority of LCPS employees that I know do not live in Loudoun, and this is due to the exhorbitant cost of living when compared to the Shenandoah Valley, and even north up to the Hagerstown MD area.
The travel costs that we incure on our daily commute does not get balanced out, especially since gas prices have risen and do not appear to be dropping. The benefits of a shorter commute, coupled with a minor decrease in pay, would greatly overpower the lure of working in a county where our efforts are overlooked and underappreciated. Also, dont ignore the fact that our health care rates were increased and copay's were also increased this year, so there is more money taken from our wallets.
We just keep getting the short end of the stick, and if that continues to occur you will only be pushing great teaching talent and excelent support staff out the door to better opportunities. If the county wants to keep their employees, and continue with the standards they have set for themselves they MUST give us incentive to stay.
We demand to be treated fairly and given a proper & fair wage, you are only going to make the situation worse if you do not make your tens of thousands of employees happy.